What Dell's Move Means for VMWare
We may lower our fair value estimate on VMWare once the $11 billion dividend is paid to reflect the major hit to its cash balance.
Dell Technologies announced on July 2 a concrete plan to bring the company public and simplify its structure. The plan entails eliminating Dell’s Class V tracking stock (herein described by the stock's ticker, DVMT) with the help of its controlling stake in
We also note that VMWare reiterated its financial guidance for its second fiscal quarter, while updating its fiscal 2019 earnings per share guidance. The firm now expects GAAP EPS for fiscal 2019 in the range of $5.43-$5.73 as well as non-GAAP EPS of approximately $5.99 per share.
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